Recent Changes to the Telecommunications Act Mean More Options for Canadian Businesses

Recent changes to the Telecommunications Act mean that smaller telecom providers like Allstream are now able to have conversations with a wider spectrum of potential partners and investors in order to expand its offering to Canadian businesses.

On September 13, 2012, MTS Allstream announced that it was  undertaking a strategic review of its Allstream division. According to Allstream President, Dean Prevost, the change in legislation has paved
the way for exploring a wider range of investment opportunities, something he believes will strengthen Canada’s telecommunications sector.

“We have advocated for these changes for many years and the Allstream strategic review is the next logical step in this process,” says Allstream President, Dean Prevost. “The amendments to the foreign
investment rules are good for Canadian businesses because they open up the possibility for Canadian telecommunications providers to establish new strategic alliances and access capital that was previously
unavailable to them. This will help us to accelerate the ongoing expansion of our networks and offer a broader range of products and services to Canadian businesses.”

Under the previous Canadian law, foreign investors were prohibited from directly owning more than 20 per cent of a Canadian telecommunications business. Now, competitive providers that have 10 per cent or less market share in Canada’s telecommunications market will be open to increased foreign investment.

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